Greatly concerned President Barack Obama would make a deal with Republicans to raise the debt limit which will entail devastating cuts in Social Security, Medicare and Medicaid, 61 House Democrats sent a letter to him Thursday, urging that he protects Social Security and reject further payroll tax cuts.
“We remain gravely concerned that yet another, unacceptable cut to Social Security’s revenue stream appears to be on the table,” the members stated in the letter to Obama. “Enemies of Social Security reject valid proposals to give the same level of tax relief to the same Americans or American businesses without using the Social Security revenue stream and resultant general fund transfers…We are concerned that a payroll tax cut may be used as the first step in a larger battle to fundamentally dismantle Social Security.”
The letter goes on: “Making it easier for enemies of Social Security to attack the program will surely outweigh any short term political or economic benefit of a deal that includes extending the current payroll tax cut or expanding it to include employers.”
“We are greatly concerned that at permanent extension of the 2011 payroll tax cut would double Social Security’s long-range shortfall and make long-term solutions nearly impossible.”
Several plans are being discussed in the context of the debt ceiling negotiations, including a “Gang of Six” proposal by a bipartisan group of Senators. This proposal seeks to cut the deficit by $3.7 trillion over 10 years, including raising $1 trillion in revenues.
Obama said Wednesday he is prepared to sign a tough package that includes both spending cuts and modifications to Social Security, Medicare and Medicaid. He also praised the “Gang of Six” plan.
Bernie Sanders (I-VT), called the “Gang of 6” plan, a disaster, saying it “lowers the tax rate very substantially for the wealthy and it will make devastating cuts….to programs that our struggling, working class in this country so desperately need.”
